The Study On The Performance Of The M&A And Reorganization Of Iron And Steel Industry

M&A has become the important means in industrial restructuring, optimizing product mix and enhancing core competitiveness of domestic and foreign enterprises. China is a steel big country, but not a steel power. Generally because of the small size of China's steel enterprises and the low concentration, M&A has become the first choice to resolve these contradictions.However, because of the diversity and complexity in M&A activities, not all iron and steel enterprises in the merger reorganizations are successful. Especially in the financial crisis background, and in the economic restructuring period and the imperfect capital market. M&A subject to various factors and constraints of reality. At the same time, due to the difference of the sample classification, and the different acquisitions, and the flaws in research methodological and other reasons, the study of M&A performance findings have not been able to achieve consistency and the study also become the hot spots as scholars. Therefore, the analysis of China's iron and steel of M&A performance in the current context have great practical significance and theoretical value.Firstly, this paper reviews the study on M&A, analyses it's motive deeply. On this basis, the paper described the principal theories in M&A performance.On the point of accounting standards and industrial policies issued view on the China Iron and Steel M&A performance in-depth discussion. According to the present situation of M&A of listed companies in China, using financial indicators evaluation method, occuring from 2003 to 2006 as subject are selected, we have chose 13 financial indexes which can evaluate the enterprises'performance, using the method of factor analysis, we construct a general function that could weigh the enterprises'performance.Under the empirical analysis, the study found out that our country's steel business performance after M&A isn't improving significantly even worse. The main causes of this result are both the lag effect of M&A Integrationthat, and that the impact of the global steel industry in an international financial crisis that resulted in prices of raw materials and fuels up and the inappropriate government intervention.Besides China's intermediaries lag behind and capital markets and financing sources are not clear. There is the unreasonable structure of our company's equity and enterprises ignore the result after the integration and so on.Finally, this paper provided with some related suggestions according to related theories on the research of M&A performance on the basis of affecting M&A restructuring of China's steel market performance of the relevant factors, included establishing fair in M&A market, strengthening the intermediary institution-building, improving the system of information disclosured and the capital markets and the channel of financing, improving the equity of govenance structure and strengthening the equity after the merger integration management.